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tv   Mad Money  CNBC  March 9, 2013 4:00am-5:00am EST

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paycheck chains came out of their multi-million-dollar mansions all week to tell you that you can't buy stocks here because the economy is humming to the point where the fed has
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to stop its bond buying program. maybe stifle growth, and rates will shoot up when they try to sell all those bonds. these critics don't believe the fed chief ben bernanke knows what he is doing. and they've wanted you to sell all of your stocks for the same reason over and over again for thousands of dow points. these are the same wealthy souls who bemoan anything good that happens, because they've already made it and they don't care if you make it, too. look, it's entirely possible that bernanke actually does the right thing. interest rates go up. but the economy still gains steam and earnings, they're not crushed. that's been what's happened before. now, i know there's been billions of bonds bought. okay? but look, it's the earnings of the companies that are driving
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stocks higher. not the fed. those earnings are real. the fed isn't buying back the stock. the fed isn't issuing the dividends. these are profits and the profits are creating this rally. believe me, the earnings aren't going away any time soon. we know the truth. they're getting stronger. there's way too much emphasis from the talking head committee about how the rally has to end, and not enough talk about what if bernanke can wean us off cheap money as hiring improves and both consumers and corporations keep doing better. that's demonstrated from the transport index, from the dow. these are all-time highs, aren't done lightly. take it from me, five years ago, i think i was the biggest critic of ben bernanke around when the fed chief failed to realize the jam we were in with the financial crisis. they know nothing, they know nothing. but when uncle ben got it, he saved the banking system, something many of the critics didn't believe was possible and a lot of smart people said they should have nationalized the banks.
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they should give bernanke a little more credit and show humility in this fabulous rally in stocks that they couldn't have done a better job keeping you out of the that was their mission, if that's what they tried to do. with all that in mind, let's take a look at what's happening next week. yes, profit from it. unlike a lot of these guys, i actually want you to make money. that's why i do this show. first on monday, we've dick's and we have to be prepared. under armour, the smaller one, and nike, the larger one. i get a lot of questions @jimcramer on twitter about which is better, nike or under armour. nike has a big business in china. i'm going to defer any decision about u.a. versus nke until we do the dick's conference call because they're going to tell us. that's why we listen to these calls, they're going to tell us. yes, i do like dick's. after the close, we get some real controversy.
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i know a lot of you are angry that heckmann came on. this is a company that disposes fracking water. as the glutton in natural glass grew, heckmann's earnings got hurt. it's been recalibrating via acquisition. i think they will -- let's say this. they have to say something that will make us patient about a turn and i think they'll do that. tuesday is costco day. here is a stock that's been on hold since they paid a special dividend last year. all that happened in the interim is that the company's gotten stronger and stronger. travel trust used to own this. like a lot of other managers, we wanted to get back in.
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keep hoping for a fullback. but given that lowe's, walmart, or target gave us tepid guidance and yet still soared anyway, i just don't think costco is going to go down very much, if at all, even if it doesn't do a good job. and if it does, well let me say, if it disappoints, it won't stay down for long. it's a buy. also chevron hosts an important analyst meeting. this is one of my favorite oil companies, with prospects and a really amazing long-term positive view of natural gas. what are chevron's plans for all the natural gas in this country? how does it feel about splitting off refining and marketing operations? we've seen it. we've seen phillip's 66 and conoco. marathon petroleum, marathon oil. the two refining companies, they've rallied 24% and 40% respectively since the year began, hence why i'm always
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telling you breaking up is easy to do. i mean, look, chevron, if they split up, if they unlock that kind of value, they'll be gigantic. starwood, one of our absolute favorite hotels. i think this could be a great one. the ceo has done a magnificent job growing this company. don't forget, starwood is letting 100 new hotels bloom in china. i think that the hotel business remains stronger in the people's republic. even with the real estate business cooling over there. ideally, the plans to break up the company, splitting it into a management enterprise, the timeshare business. the hotel business can be fabulously lucrative if you get it right. wyndham worldwide hit another new high. may i say congratulations to steve holmes. he's the ceo of wyndham, which happens to be one of the most shareholder friendly bosses in the publicly traded world. thursday -- this is a new one
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for me. at least for a while. thursday we get results from diana shipping. we've hated them forever, but you know what? the freight index has i believe put in the bottom, it keeps up a little bit every day, it seems. while diana isn't necessarily cheap, it's already run up 22% for the year, i bet we'll actually like what we hear. i want to stay focused on this shipping group all next week. we also get a report from ulta salon, a franchise beauty retailer that we've liked for a long time. the management turnover -- we're not touching ulta anymore. i'm going to be in total listen mode. i will say i am concerned about ulta. i think this is going to generate a lot of excitement, a lot of buzz. honeywell hit an all-time high this week, that fabulous company's prospects at his
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analyst meeting. i would be a buyer ahead of this meeting for united technologies. price break from the market going down off of some number or spain or italy. some guy coming on tv saying the fed is drinking the punch bowl, whatever. most important, on thursday, we get the results of the second round of banks. we had the first round, okay? i'm reiterating, i think that the second round is going to be a big -- let's just say a wake-up call for people looking at sun trust. that's a bank that failed last time. we talked about it last night. we're thinking a nice return of capital, perhaps a 5% buyback, and a sweet bump in the currently american league dividend might be in order for sti, a once very proud bank that's no longer considered to be a blue chip. finally on friday, we get february industrial production numbers. i usually don't highlight this number, but in a nod to all the managers who fret endlessly about when the fed will start hurting the economy, these industry production numbers figured mightily in the
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tightening decision of alan greenspan. i bet if we get a number that shows strong industrial production, these bernanke blasters will call for his head for not immediately raising rates. maybe they're all short stocks. maybe they're not all in the market. i bet you some of them are actually not making money this year. let me give you the bottom line. unlike so many other talking heads, i actually like it when people are higher. i like it when you make money. i actually think that it's good, not bad for the economy. i actually trust ben bernanke, silly me. i say what's good for the economy is good for the stock market and good for corporate profits and good for you. which once again, we will hear about from a host of great american companies when they talk to us next week. let's go to denise in california, please. denise. >> caller: boo-yah. is this that sexy jim with a smoking hot body? >> no, no. this is a different jim.
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he's taken over that guy. >> caller: i have a question about petsmart. it's gone down since i bought it. and i know they offered poor guidance for the year. and also ross stores have gone down, too. should i buy more of each one? >> what did you start -- when you started you were talking about -- oh, never mind. you were discussing me. just trying to get the physique thing down. petsmart i actually think was an overreaction. i think it went down too much. ross stores was an overreaction. i think that went down too much. these stocks are now in the penalty box. we actually can't touch them until we see the next quarter. that may be a long time to wait, but i fear that people think like bed, bath & beyond that there's no coming back from these quarters. we've got to wait. patience. victor in ohio. victor? >> caller: yes, sir. jimmy, this is victor in columbus, ohio. great big urban meyer. >> man, i like urban meyer. what a powerhouse. and you know what? can we just stipulate that we don't need to watch s.e.c. football every single weekend? there are other conferences! go ahead.
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>> caller: hey, the reason i was calling, i'm a longtime investor in h&r block because of the great yield. i've been licking my wounds the last couple years. their story has changed here recently. they finally divested some of their toxic mortgage investments and they're refocused on their core business. i sold 20% stake at 24.80. it's now at 27. big run today. how much run do they have left? >> i remember when the stock was considerably higher. i've got to tell you. i remember when they turned down all the other things they were doing that were bad. i don't want you to sell anymore. i think this is a very compelling story. all right, what's good for jobs is good for the economy. what's good for the economy is good for the market. and if it's good for the market, it's good for corporate profits. so make sure you're listening to what these companies have to say. because i've got to tell you, it could be just still one more
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good week for those who are not frightened out of their wits and sitting with all their money in their mattress. "mad money" will be right back. coming up, train time? from trucks to now trains. >> it's real enough so we're spending real money. >> natural gas seems to be getting another shot at being a fuel of the future. westport innovations has the technology to make these engines roar to life. and after reporting better than expected earnings, is now the time to ride? or should you ease off the gas? cramer talks to the ceo just ahead. and later, medical might? the business of biotech is taking off. so cramer's focusing on the companies developing breakthrough drugs with cutting edge science. tonight, he spotted a speculative play that could be on the verge of the next big thing. all coming up on "mad money." don't miss a second of "mad
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money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to on monday morning, warren
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buffett came on "squawk box" and in a stunner endorsed a cause that i've been championing for years. america's cheap plentiful natural gas as a replacement fuel for all sorts of surface vehicles. anything with an engine. he even told becky quick straight out that burlington northern, his railroad, was experimenting with natural gas powered trains. take a look. >> the railroads are definitely experimenting with converting to natural gas. it's not a simple matter and i can't tell you the technicalities of it, but it's real enough so we're spending real money. in fact, i think we ordered a couple units that we're working with. so when you get natural gas,
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three and a half dollars and you look at where oil is, you've got to look at converting any kind of an engine to natural gas. >> when i heard that, i thought that's westport innovations, wprt. they're involved in those engines. and makes the technology that allows engines to run on compressed to natural gas. and now locomotives. all that is still in the development stage and could take years to hit the market. the company has terrific partnerships, including one with cummings and another with caterpillar. we've been waiting for washington to embrace natural gas but i feel like it's pretty much a lost cause. as this fuel is just so much cheaper than anything oil-based. westport reported just last night the company missed the expectations, delivering a wider than expected loss, the stock jumped 89 cents or 3.15% today. westport is still around 20 points off its high, but the stock has rallied 12% since we
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last spoke to the ceo on november 12th. could 2013 be the year of the natural gas vehicles? could it be the year where westport gets closer to profitability? let's talk with david demers, the founder and ceo of westport innovations and find out more about the quarter and where the industry is headed. mr. demers, welcome back to "mad money." >> good to see you again, jim. >> all right, david, no doubt you heard the warren buffett comments. where is burlington northern, where is csx, where is union pacific in terms of the seriousness with which they're addressing locomotive engines for natural gas? >> i think it's very serious. it's been no secret, we're also working with cn rail, another one of the big players, and with the announcement with caterpillar and their emd
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division last june, it's no secret that everybody is really excited about the opportunity, and frankly, i don't think it's going to be years away. you can see everybody's moving now. they have to move. whether we get the entire rail industry converted over the next decade is another question. but people are moving now. it's really exciting. >> couldn't you just tell me what it looks like? here's what i'm thinking, you tell me. there's a train and behind it are some tanks, and because they carry the stuff, they could have tank after tank. do today really need to stop and get filled up all the time? >> no, it's one of the beauties of what's going on. i'm sure you've seen that we're moving a lot of oil by rail these days. well, we're starting to move natural gas by rail, too. it's dawning on a lot of people that we don't need to have refueling of locomotives in the yard. we can haul container loads, rail carloads behind the locomotive and fuel it as far as we want. we can refuel at one big central location. that's why you're seeing a lot of the gas providers get really excited about this opportunity. that does a bunch of things. it lets us get the rail business into moving natural gas, which is a new business. it gets them using a much cheaper fuel. it lets the gas providers find a great big new market, because as you know, these guys use a lot
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of fuel every year. so it's a really compelling opportunity, and what we have to do with our partners at caterpillar is work out the solution for everybody. and that's what's up. >> so why don't we ever just hear people say you bet, we're ordering 30 of these right now, it's just really terrific, they've got them, we'll take them. >> well, actually, we're hearing that. but maybe they don't want to go public with it, i don't know. but everybody's looking at it. we're in the stage now -- as we talked before, jim, there's always a stage in a new technology where you see doctors get out there and prove that the thing works, and that gets everybody's attention. and then the next phase is bit of a pause while everything else gets organized to get the price points, get all the details sorted out, and i think that's the pause we're in now. it's what i've been saying to our shareholders, that clearly the tipping point has happened but now they're getting ready for big search, which will take a few years. >> one of the reasons people get angry with me when i say i like
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this stock, is they say jim is there any hope in the near-term future, in the next two or three years that they can be profitable? sure, they've got good revenues, but they keep losing money. >> well, we said it yesterday, jim. i admit, we have been a bit rude about the word profit. it's still hard for me to say it. because in the early stages, i think you have to invest. we invest, invest, invest to get ready with technology, to get the market position, to get the strategic position, to get our i.p. portfolio. when you're ready to launch, it's time to focus on traditional business metrics. now we're look at growth margins and efficiencies and all that good stuff. so that's what we said yesterday. we think the business units that we organized into yesterday will show cash flow, positive cash flow this year, total company cash flow next year, and profitable in 15. so we're on it. >> i'll take it. i was with some truckers -- trucking companies, the largest
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ones during the super bowl in new orleans beginning last month. and one of the things they said is listen, it's the 12-liter engine and when are we going get 12-liter engine? that has been delayed. it's for trucks. that's the popular size. can that be made mass produced in volume by year end 2013? >> yeah, it is. and the delay, by the way, is people are waiting to get their hands on them. we haven't had any delays in announcement. we've got trucks on the road in test for about a year, and as you know, it's quite public that we're starting to ship them in april. it's next month. there's going to be a -- you know, a controlled release between now and probably august is what we're thinking right now. probably that early stage is what we're going to need to be cautious about. these are the first natural gas engines coming out of cummings jamestown plant. we want to release them to all
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of the oems, so there will be some start-up caution, but we're ready to mass produce end of this year, and it will be as many as the market would like, i think. >> and as you said, we are getting to that point now where it's about -- it's now -- it's proven. the technology is proven. >> yep. >> and now is the time. all right. >> thanks, jim. >> okay, good to see you, sir. david demers, the ceo of westport innovations. guys, can't give up. we're almost there! wprt. stay with cramer. coming up, medical might? the business of biotech is taking off. so cramer's focusing on the companies developing breakthrough drugs with cutting edge science. tonight, he spotted a speculative play that could be on the verge of the next big thing.
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sure, the market is roaring of late. yes, there's plenty of money to be made in the old fashioned blue chips. that can take away from the desire to speculate. do you need to try to hit it out of the park with high-risk, high-reward plays when you can make so much money with kimberly clark? that said, we aren't going to stop trying terrific specs for you every friday. for those of you who want to go for the long ball, provided it's only a small part of your
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portfolio -- by the way, the federal reserve, they're not really involved with this part of the process. so, with that in mind, allow me to introduce you to a new name for speculation friday, or rather a very old name that we haven't tapped into in a long time, and the name is -- viropharma. vphm. it is my favorite kind of biotech, it's an orphan drug play. develops drugs for rare diseases. two stocks that have given us enormous gains since i first got behind them in october of 2010. many of you bought biomarin. orphan drugs are in the pharmaceutical sweet spots since they get extra incentives from the government. because otherwise they would go untreated. they're also the most expensive drugs out there. hundreds of thousands of dollars a year in some cases, because the people taking them, they don't have any other
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alternative. viropharma -- most people don't think of it as an orphan drug company at all because it didn't used to be one. the stock is off most investors' radar screens because the main product, an antibiotic went generic a year ago. i remember i said i'll write these guys off. companies had some manufacturing issues in the past. uncertainty about how the company would do. it fell from $27 and change, a 16% decline. not great. but something happened while everyone was either ignoring or selling this stock. viropharma transformed itself into an orphan drug company and now it's paying off. both for the underlying business and for the stock, which has rallied nicely 12% since the beginning of 2013. you know what? vphm, it's got a lot more room to run.
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>> all aboard! >> the new viropharma doesn't care about boring antibiotics. it's got a whole slate of sexy orphan drugs, the kind that wall street gets so excited about it. we have all these companies on air. they've got even more coming down the pipeline. first there's simrise for a disorder that can cause swelling in the face and the extremities. can send a person to the hospital. if the swelling happens in the upper airways, it can be life threatening. they have the only therapy on the market that is designed to prevent these attacks from happening, which is why they can charge something like $350,000 a year for the treatment. which is viropharma's new drug. the company bought it from a place called lev pharmaceutical. they paid $500 million. five months later, they got fda approval. and last august, they finally
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got industrial scale approval. which means the company can manufacture as much of the drug that it wants. when viropharma purchased them in 2008, they initially forecasted the drug could do peak sales of 350 to $450 million in the united states. four years later, they said peak sales could be double in one year. about double what they're doing now. viropharma's original forecast turned out to be way too conservative. i think the new one is, too. there are about 5,000 people in the united states who suffer, that we know of, from this disease, and in the four years since cinryze has been on the market, the company has penetrated just 20% of the patients. the vast majority of the people with this condition still go untreated.
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cinryze's sales should continue to exceed wall street's expectations. remember, they only paid $500 million for this drug in 2008. it's a steal considering how much money they're making off of it now. the fact that it could conservatively earn $700 million in peak sales down the road, it's not the stock, people. there is a concern you'll be hearing about. cinryze loses its market exclusivity. people are worried they could face competition from cfo pharmacists, a similar drug. i think these worries are overdone. with these rare orphan conditions, people are very unlikely to switch drugs. that's been the pattern that we've discovered once they find out it works. the drug people are worried about as competition -- the one that they're worried about, it has a shorter half-life than cinryze. it may not be as good at protecting against hie attacks. they are developing a more convenient version of cinryze. the current version needs to be taken via iv. the new one could be taken to last longer. even if the worst fears come
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true, this market is bigger than wall street believes it to be. so there should be room enough for two players to make plenty of money, but i'm betting on viropharma. it isn't a one-drug wonder. it's a very well-managed company. 2011, they brought a drug for adrenal insufficiency. they paid $37 million. these guys are very shrewd buyers. the drug has been approved in europe, just launched there a few months ago. now they are planning peak sales to 150 to $250 million in the eu alone. the fda asked for more data on this drug, so they'll have to do some additional study. in april, we should get more clarity on whether the united
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states would consider this one. we're going to stay on this story. the key is that viropharma -- i think we should be in the stock before we hear more about this drug's prospects in april in the united states. here's the bottom line. viropharma has transformed itself from a dally purveyor of antibiotics that nobody cared about to a rapidly growing red hot orphan drug company that nobody seems to know about, and wall street is just now starting to notice. the stock is picking up sponsorship. deutsche bank just upgraded to a buy. $37 price target on monday. i think you want to get onboard before more people realize how terrific the viropharma story has become. nothing is going to happen immediately. so do the homework. check it out. and only then can you pull the
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trigger. let's go to zack in my home state of new jersey. >> caller: boo-yah, mr. cramer! >> all right, an excellent stutter boo-yah to kick off this segment. >> caller: coming at you from the beautiful garden state. i want to get your opinion on pfizer. is this a good long-term bet? >> yes. i like pfizer, a lot of ways a key to this market, meaning it represents a blueprint drug stock that can go higher. they spun off the animal health division, they are doing so many things right, it's incredible. speculation in this market means finding stocks flying under the radar. that's what we're trying to do at this stage of the cycle. wall street doesn't get fully recognized to transform viropharma. take the time to do the homework. do it right. i've got to tell you, i think this could be a very good one. lightning round is next. coming up, you sent cramer to the books. he's got the answers you need. jim responds to your tweets @jimcramer #madtweets, and your e-mails just ahead. it is time! it's time for the lightning round!
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it is time! it's time for the lightning round! you think i'm just getting
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started, that's right. are you ready? time for the lightning round! start with christina in pennsylvania. christina? >> caller: what's going on, jim? >> not much. just kicking back for the weekend, like i know how to do that. what's up with you? >> caller: i just wanted to say boo-yah from pittsburgh. but here's my husband with the stock question. we love you. >> okay. >> c.a.b. record quarter, growth ahead. how much higher can it go? >> they're going to report this week. what i fear is that there's other moving parts here. why don't you do this, take half off ahead of the court. last time it got nailed. i don't want you to get nailed with the stock. let's go to jared in kentucky. >> caller: yeah! >> what's up, jared? >> caller: i'm calling from the cumberland river. >> boo-yah. what's going on? >> caller: i was wondering if i should buy rtk.
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>> no, no, no. no, we're not going to -- it's a real speculative. we decided we played gtls, which is gas to liquids, and the stock was down a buck and a quarter today. let's go to chris in virginia. chris. >> caller: boo-yah, jim. >> boo-yah, chris. >> caller: stock symbol ng. >> i saw this gold fund was down something like more than 26%. and it's got a big position at ng novagold, which is not good. i just think that you can hold on to it. but there's nothing exciting happening there. let's go to richard in florida. >> caller: hello, jim. faithful viewer at 6. the stock is oak tree. >> i like it. howard marx. he's a good friend.
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a real money pro at the and will be grilling warren buffett at the big annual festival. let's go to frank in new york. frank? >> caller: boo-yah from nanuet, new york. >> i pass right by you on my way to work. so i hi to you all the time. what's up? >> i've had chesapeake in the portfolio and it's been red all year. it finally turned to green over the last two days. so i'm wondering if chesapeake has enough gas to keep going or should i take a modest profit and do something else. >> natural gas price is going up. this is not the nat gas stock i want you in. i think you wait until 23 and then sayonara! and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. >> caller: hi, jim.
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this is bill from state college, pennsylvania. >> yes, nittany lions! >> how's pops? >> how's pops? we had the best time this weekend. went to dollar tree. it was just terrific. went to morning glory for brunch. got a lot of candy. met this woman. she said what are you doing here at the checkout? dollar tree. karen. in my home state of new jersey. >> caller: hi, jim. >> hi, karen. >> caller: i recently enjoyed a "mad money" burger at the hatch. >> you had the burger? did you like the dollar sign? i got a burger named after me. it's a cheeseburger -- it's -- anyway. >> caller: boo-yah from cincinnati. >> what's going on out there? >> caller: well, it's a little cloudy, but it's very nice, warm weather.
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>> that's good. a little chilly here today. i hope you had the relish. it's what really makes the burger work. do we have any swiss cheese? there are some things even this market cannot forgive. at the top of the list of unforgivable offenses, dividend cuts. you've got to beware of falling dividends. when i saw that atlantic power had a 10% yield, let's just say that was about as big a red flag as you can -- okay, what am i? i'm not lebron, what can i tell you? as big a red flag as you can get. i am lebron. >> wow!
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call 1-800-843-8193 for more information. talk to your doctor and find out if the time is right for provenge. before we get to your tweets, which are sent to @jimcramer on twitter, time to do some homework. on the last day of january, krex, a tiny biostock tech. i told deanna to hold off. i did some work here. on january 28th, keryx wowed the drug community. the data showed that the drug is
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doing much better than expensive i.v. drugs that are on the market right now. the news was a game changer. it had multi-billion-dollar potential. deanna called me, 162% move in five days. after that kind of run, i had no choice but to do some homework to see if there was upside left. since then, keryx has had an 18% decline. the analytics report created doubts about the company's ability to obtain a patent term extension. along with new chemical entity status for the drug. in my view, unless you can afford to buy a whole battalion of scientists and patent lawyers, it's too difficult for me. there's easier ways to make money out there. i don't need to nail everything.
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i just need to nail the real ones that are easier to do. because there's some easy ones right now. next up, february 7th, jason in massachusetts talked about liquidity services, lqdt, the world that finds the most transparent services. 1.7 million buying customers. on january 31st, liquidity services reported beefy estimates, but also cut guidance. reflecting the company's need to invest in online platforms, that is not a simple task, the stock is down 22% since the beginning of the year. however, we have been worried about liquidity services in the past. back on june 28th, i told you to stay away from this thing because e-bay was entering the wholesales base. warned about declining margins. the ceo wanted to sell a big chunk of its holdings. the company kept cutting guidance, and as a result the stock is down 37% from where i told you to sell it. so this is a company where management lacks credibility,
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faces lots of competition and also has high exposure to the department of defense. so i'm telling you right now stay away. let's go do some tweets. i'm going to go over here because someone always says jim, go over there. you just don't see them. first up, that's a little tv. there's other people in this room besides me. shocker. first up, we have @protraderx, who says @jimcramer, boo-yah, jim, i need your advice on kkd. take profits here or hold on? this guy does a lot of hash tagging. i think you sell kkd and roll it into dunkin' donuts where there's an incredibly strong multi-year story, not unlike domino's pizza. isn't it funny? i like dunkin' donuts and i also like to go and eat domino's pizza.
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this tweet is from @mestabule and she wrote to @jimcramerer thoughts on tibx. poised for recovery or a good exit point? they blew the quarter. i'm going to say that because that's what they did. they were just up 10%. i cannot recommend a stock -- i think it pulls back and we'll look at it again. i said we need to see the next quarter before i pull the trigger. "mad money" is back after the break.
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exploited versus unexploited. new names versus old names. overheated and overowned sectors versus underowned sectors that haven't heated up yet. that's where i think we are in the stock market. money managers all over the country are looking at stocks of countries hitting all-time highs. i said wait a second, give me something that's still behind long-term, behind the averages. you know, give me something i can make a thesis for buying. they want to know where there still might be value and right now they are finding little value in the consumer second supervisor. and a ton of value in the once growth names in tech, both hardware and software. companies like jbs uniphase, bmc
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software, computer sciences. before you jump up and down for these names because i tell you the hot money is flowing in, let me go ahead and tell you thousand money management business works. you know when you get to the supermarket and you see something labeled new, you might actually be more likely to try it than not, at least that's what all the brand people i have ever talked to tell me. it's not that much different than the money management business. there's an insatiable desire to hear new ideas and to take action on new ideas. even if they are companies that dazzle in a different time in yesteryear. when i first got in this business, texas instruments. think about all the electronic instruments that are now in your car versus what used to be in it. if you ever get a look at a late model ford or chevy, you will be in shock at how little instrumentation there was back then. these days cars are chock full of semiconductors. what was then called high-technology. the stock market equivalent of ancient history now. texas industry now considered gross domestic secular play. if there's growth in the economy
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-- if there's no growth, it languishes. an update showed the company might be having a growth spurt. inventories are leaner. things are getting better. the stock is highly anticipated, so it didn't gallop as much as you might have thought. no matter. texas instruments is getting talked about more than i've heard this years by fund managers who haven't looked at it in ages and i suspect it will be charging higher soon. breaking out of this long constraining range, these are things that indeed getting better than the earnings estimates for txn are probably too low in. the interim, it has raised the dividend to the point where it yields nearly 3.2%. that is an awfully nice cushion if the stock gets hit while you're waiting. think about the telecommunications companies. companies that haven't spent a lot of technology of late. think verizon and at&t. they're starting to spend again and they're making sense, too.
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in the meantime, companies that from provide information technology up, computer sciences, cse. cpwr? bmc? they're coming back to life as new and inexpensive speculations. companies are feeling more confident about spending. it's out with the old and in with the new, people. and the new in this case is overlooked, unloved technology from yesteryear. it's beginning to work and i suspect it keeps working as long as the stocks don't go so high that they're no longer considered cheap. the move into old tech is in its infancy, and those left behind stocks, they're now ready to run. stick with cramer.
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